Sales Of New Cars Plummet As Scrappage Scheme Ends

[Raistlin]

New car sales fell by 11.5 per cent to 128,811 last month compared with January 2010, new figures showed today.

The Society of Motor Manufacturers and Traders said the decline was in line with its forecast and partly reflected the ending of the car scrappage scheme.

Its figures also revealed that the market share for cars with lower CO2 emissions continued to increase, rising by more than 65 per cent in January.

SMMT chief executive Paul Everitt said January's fall in new car sales marked the beginning of a challenging year for the UK motor industry, adding: Consumer confidence is low and it is important that Government uses the March Budget to help relieve some of the financial pressure on motorists by freezing fuel duty, while providing stability and certainty on motoring taxes.

'Despite the challenging conditions, the demand for low CO2 emitting and highly fuel-efficient cars continues to grow.'

Just over 65,000 new diesel cars were sold in the UK last month compared with almost 62,000 petrol models, said the SMMT.

New car registrations have now fallen for seven months in a row following January's 16,668 reduction in sales.

The SMMT said last month's rise in VAT to 20 per cent also had an effect on sales, as well as uncertainty over the economy, although the industry group mainly blamed last year's ending of the scrappage scheme, under which motorists were offered a discount on new cars for trading-in older models.

In January last year, almost one in five new cars were sold through the scrappage scheme, and the SMMT said it expected the knock-on effect to hit the market during the first six months of 2011.

Total sales volumes are now forecast to fall by 5 per cent this year, to 1.93 million.

Private car sales showed the steepest decline last month, although fleet and business sales were also down.

Demand for smaller cars, a market particularly boosted by the scrappage scheme, fell sharply last month, while the executive, luxury and dual purpose sector recovered strongly, said the SMMT.

UK-built cars took a 12.9 per cent share of the market, unchanged from a year ago, while alternative fuelled vehicles matched their record share of 1.4 per cent.

The Ford Focus was the best selling new car last month with 7,582 registrations, followed by the Ford Fiesta (5,844), Vauxhall Astra (4,510), Vauxhall Corsa (4,363), VW Golf (4,110), BMW 3 Series (3,184), VW Polo (3,010), Vauxhall Insignia (2,236), Peugeot 207 (2,171) and Nissan Qashqai (2,108).

[bothwell_buyer]

duuuuhhhhhhhhhhh

theres a recession on in the UK - outside of Surrey !

[Raistlin]

Recession, what recession....

Let them eat cake

[hertsnminds]

Looking at the top 10 it makes you wonder just how much of a influence retail sales has on the figures. Looks like hire car and rep-mobiles top the list?

[Red diesel]

:censor: me the Focus has sold over 1000 more cars in January than the compbined total of the Insignia (at no 8), the 207 (at no 9) and the

Qashqai (at no 10) combined.

Big off loading of end of line old models at low prices to rental companies id imagine - theres a new model coming

out so Ford will want to get the last of the old models shipped out the gate swiftly.

Red diesel